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Auto Bonds Drive Into the Fast Lane

By

Al Yoon

February 25, 2012

In their quest to find a haven from Europe's sovereign-debt troubles, some money-market funds are turning to debt backed by auto loans, spurring a barrage of sales and sending interest costs on the debt toward all-time lows.

Some $15.3 billion in auto-related securities have been sold this year, surpassing the $9 billion issued in the same period in 2011, according to Barclays Capital.